Risk aversion does not mean that investors avoid risk entirely. Rather, they will accept risk if they are adequately compensated by additional expected return.

Name: Risk aversion does not mean that investors avoid risk entirely. Rather, they will accept risk if they are adequately compensated by additional expected return.
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This is a commonly accepted understanding of risk aversion among investors. They may be willing to take on some level of risk if the potential rewards are sufficient to justify it.

Risk Aversion Does Not Mean That Investors Avoid Risk Entirely